How much do Home Renovations Cost?

Australians have many reasons for renovating their home. Sometimes, renovations are necessary, and other times, they are to update the house and create an atmosphere that is perfect for your family. Renovations can often cost more than most people think but will vary greatly. A small home renovation can cost as little as $15,000 and can reach up to $200,000+ for large homes. 

Considering the endless options and ability to spend on renovating your home, it is recommended to spend no more than 5% of the total value of the home on renovations to avoid over-capitalising.

Below is the average hourly labour cost for common rooms involved in a home renovation such as a kitchen:

Kitchen renovation with white cabinetry and black benchtops. | Source: Handy Kitchens Pty Ltd

Australians embark on the home renovation journey for many reasons. Some of the top reasons for doing a renovation job might include: 

Increase the value of your home

This is the number one reason why many people do home renovations. If you are planning to sell your home any time soon, a home renovation can result in significant returns if you are careful about your budget. 

Increase and improve living space

Some people decide to renovate their homes to improve how they feel about the space. Additions to give them more space, and projects to improve the living space are often the result of life changes, such as having a baby or other family changes. 

Personalised style

Updating your home to reflect your style is an excellent reason to do a home renovation. Our home is our sanctuary and a place where we can relax. Creating a space that is a reflection of us is an excellent way to get more enjoyment out of the area. 

Local council regulations

Make sure you check the local council website to get an idea of what you’ll need to pay in fee’s to get your renovation underway.

Asbestos removal

Depending on the size of your renovation, asbestos removal can potentially add a significant cost to your home renovation. For a small space, asbestos removal can cost anywhere from $300 to $850, all the way up to a whole house which can cost up to $9,500. This is one job you must outsource as it’s highly unsafe to do yourself.

Labor

The obvious labour costs for a renovation include builders, electricians, plumbers and speciality trades like tiling or glaziers. But keep in mind the additional costs that come well before the first wall is knocked down. Architects and engineers can be pricey if required for the job, so be sure to do your research and get several different quotes before settling on a business.

Rubbish removal

Getting a skip bin on site is a cost-effective and convenient way of removing rubbish from the site. Keep in mind a skip can cost anywhere from $300 for a small skip to $2,000 for a large skip.

Finishes

The quality of finishes used for the renovation can add extra cost to the overall project. If the budget is tight, there are many ways to get good quality fittings, at a fraction of the price (keep reading).

DIY vs professional

As mentioned, one of the significant costs involved in a renovation is the cost of labour. Minor jobs like painting, small demolition work, outdoor landscaping, plastering, manual labour, tiling and cosmetic changes can all be done yourself. This will save you money, but not necessarily time.

It is highly recommended that jobs requiring specific qualifications, that are unsafe or could cause major damage should be left to the professionals. These services include plumbing, electricals, gas fitting, structural work, roofing, floor sanding and any major demolition work.

Home renovation grant (HomeBuilder Scheme) Sometimes, the cost of extensive renovations can be offset by the HomeBuilder government grant of up to $25,000. You must meet specific requirements, but if you qualify, this program an save you quite a bit. 

Home loan/mortgage. Sometimes, the cost of renovation can be included in the home loan or mortgage. Other times you must get a separate home renovation loan. The interest cost on these loans can add to the final cost of the project significantly, depending on the loan terms. 

Offsite living during the process. If the project is extended and will involve significant work, you might have to move out of your home for a time. This is a cost that many do not consider in the budget, but it is a good idea to calculate the cost of this inconvenience into the budget from the beginning. 

Powder room with green herringbone tiles. | Source: Modern Era Constructions

The size of the house is a critical factor in the cost to rebuild a home. Here are some examples of what you might expect.

Small homes/apartments 

Small homes and apartments often involve the least complicated types of work. A reasonable average cost for a small, 3-bedroom apartment ranges from $15,000 to $73,000. 

Medium homes  

With medium homes, the building costs per m2 can go up with the complexity of the job. For instance, an addition might mean running new plumbing or electrical, which can add to the cost of the renovation significantly. A 2000 m2 home will cost between $30,000 to $120,000. 

Large homes

Renovating a larger home is often more complicated. Also, it is more likely to involve high-end fixtures and materials. The cost of renovation a larger home typically begins at $150,0000. If you need a new roof or carpentry work, this can also add to the cost. 

If you cannot afford to strip your home to the studs, there are still a few renovations that you can do. One of the major cost factors is the price of materials that you choose for your completed project. Here are a few examples of what it might cost for a whole-house renovation of a typical 400 m2 home. 

Budget. There are many cheap ways to renovate your house, including choosing lower-end materials. This type of renovation can cost between $15,000 – $40,000, for lower-end materials. If you’re working with a smaller budget you can prioritise to just renovate a few key rooms rather than the whole house. 

Mid-range. A mid-range renovation with materials that are average quality, but not luxury, on the same house would cost $40,000 – $75,000. With a mid-range budget, you can renovate an entire house if you choose your materials wisely. 

Luxury. A luxury upgrade on the same house would cost upwards of $100,000-$200,000 or more. 

Here are some estimates for other home renovation jobs within Australia (average reported cost):

Tip #1: Get multiple quotes from builders

Speak to several builders in your area. This will give you an idea of what you should be charged for certain renovation services as well as average renovation costs.

Tip #2: Know what you want

Being able to articulate what you want to your builder will help them give you the most accurate quote possible.

Tip #3: Do your research

Know roughly what kind of costs you’re up for. By having an understanding of approximately what you’ll be quoted, you’ll be able to engage in negotiations from a position of knowledge. Some companies may even have a renovation cost calculator to help give you an accurate estimate before you ask for a specific quote.

Tip #4: Budget a buffer

Unexpected things will almost always pop up during a renovation. To avoid stress and worry allow an additional 10% to 15% buffer to your renovation budget in case you need it.

Bathroom with deep marble tiles. | Source: Hunter Building Group

Small or large business? 

Both big and small builder both have advantages and disadvantages. One benefit of going with a big builder is that the products and materials they source are often purchased in bulk and that saving can be passed down to you. Bigger builders also tend to have better procedures in place if and when something goes wrong. A smaller builder is more likely to be flexible and allow to changes on the fly without charging as much for the change. Customer service with smaller builders also tends to be more personal with fewer builds on their calendar each year, it means you get more of their undivided attention.

Should I do it myself? 

For any small jobs that are low risk, absolutely you can attempt them yourself. Anything that might require a specific accreditation or certificate or anything that may result in possible large damages should be left to the professionals. Any jobs which require plumbing or electrical changes must be done by a registered professional.

Meet the people you’ll be working with. 

For a big job like home renovations, it’s highly likely the builder will need to come and do a site inspection to see what needs to be done. Ensure you are home and able to walk them through exactly what you want to ensure they can do it, and also that you get the most accurate quote possible. 

* The cost data is based on Oneflare and third-party sources